Microsoft's Xbox 360 to finally become profitable in 2008?

It's fairly safe to assume that Microsoft as a whole ain't hurtin' in the wallet, but for its Xbox platform, the positive cash flow is (possibly) just around the corner. According to an interview with Robbie Bach, president of Microsoft's Entertainment and Devices Division, the firm's gaming business "will be profitable next year," which will certainly be a breath of fresh air considering how much loot it has been losing for years in the arena. Still, it's not like any major competitors aren't suffering through the same pains, and while the Big N is smiling all the way to the bank with the profits it makes on every Wii sold, we're glad that at least a few consoles are offering up high-definition and true online play regardless of the cost. Obviously, the continual decrease in component costs are making the consoles cheaper to produce, but Bach went so far as to point out that (overpriced) peripherals, an increased user base on Xbox Live, and software sales would be the primary margin drivers next year. So now that the Xbox 360 is looking rosy, what's to be done about the Zune?